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Explain the working of selective credit …

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Explain the working of selective credit control of money supply

Posted by Bhumika Dabas 6 years, 5 months ago

CBSE > Class 12 > Economics

1 answers

Saumya Joshi 6 years, 5 months ago

Selective credit control may increase or decrease money supply in different sectors. Selective credit control refers to the policy of banks in which they give more credit to specific sectors rather than others. Like more agricultural credit and less construction credit. So if selective credit control is applied then it may result in either increase or decrease in money supply.

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